Gold gains over 1% today, setting a new record at $3,728 per ounce.
On the day of the Federal Reserve’s first interest rate cut this year, gold initially reached new historical highs, breaking above $3,700. However, due to mixed interpretations of the decision, gold underwent a correction during Wednesday and Thursday's sessions. On Friday, as the market’s sentiment became clearer, investors resumed purchasing gold, and today the price of the metal has climbed another 1%, reaching a new historical peak.
The market's confidence that the Fed will enact two more rate cuts this year is currently the primary driver. We can expect US central bankers to provide further clarity on monetary policy as they speak throughout the week. Today, we will hear from John Williams, a key figure at the Fed who, as the head of the New York branch, is a permanent voting member of the FOMC. Additionally, Alberto Musalem, Mark Hammack, Tom Barkin, and Adriana Miran will also speak. Tomorrow is arguably a more significant day, as we will hear from Jerome Powell again, along with Raphael Bostic. Thursday will also be important for speeches, with appearances from John Williams, Michelle Bowman, Michael Barr, Lorie Logan, and Mary Daly. On Friday, we will get the Fed's preferred inflation measure: PCE inflation. The headline reading is expected to accelerate to 2.7%, while core PCE is forecast to remain at 2.9%.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Expectations for interest rate cuts by next September have been rising sharply but are not currently in line with gold’s high prices. However, a similar situation occurred in May and June, and gold still gained in value. Source: Bloomberg Finance LP
Gold is currently testing the $3,720-$3,730 per ounce range, which is also the external retracement of the downward wave from April and May. Source: xStation5The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
